2020/21 COVID Impact on

Survey #6 Results: Light at the end of the tunnel 9/2/20

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IAB Proprietary Research 1 Contents

Executive Summary 3 Section I: Full Year 2020 Ad Spend 4 Section II: 2021 Ad Spend Projections 9 Section III: Anxieties around UGC & Social 12 What’s Coming up from IAB Research? 16 Appendix 17 Who We Surveyed 18 About Us 19

IAB Proprietary Research 2 Executive Summary

• Across all media, FY average estimated U.S. ad spend is expected to fall by -8% in 2020 vs. 2019

Total FY Traditional Media: -30% Total FY Digital Media: +6%

• A notable difference between traditional and digital media ad spend indicates continuing shifts in budget from Traditional TV to Digital CTV: 2020 Traditional TV (Linear/Broadcast): -24% vs. 2019 2020 Digital Media Connected TV (CTV): +19% vs. 2019

• Buyers report that 2021 ad budgets are still reasonably in flux • 9% have clearly defined budgets • 70% of buyers report having at least ballpark 2021 budget estimates

• 90% of Buyers are concerned about UGC adjacencies

IAB Proprietary Research 3 Note: Total Traditional Media & Total Digital Media percentages are average estimates based on Buy-Side projections per channel I. Full Year 2020 Ad Spend Context & Latest Projections Average time spent with Digital has increased during Covid...

Consumers spent 10% more time with Digital in March-July 2020 Y/Y (vs. March-July 2019)

Total Time Spent (Mins) with Digital by Month, Y/Y 2,200,000

2,100,000 2020 2,000,000 Δ +10% 2019 1,900,000 Δ +13% 2018 1,800,000

1,700,000

1,600,000

1,500,000

1,400,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: ComScore US Media Metrix Multi-Platform, Total Audience (31 Mos. Jan ’18--Jul‘20) IAB Proprietary Research 5 Desktop, Tablet or Smartphone (Mobile Browser or Apps); Desktop Age 2+; Mobile Age 18+ … with Video (OTT/CTV) seeing particularly increased audience attention.

2019 2020 2019 2020 Quarantines begin

Source: Comscore, 6/23/20 IAB Proprietary Research 6 Increased audience time spent is driving ad spend to Digital

Buy-side average estimated total ad spend in 2020 is now projected at -8%, with only Digital showing Y/Y growth at +6%

2020 Est. % Change Ad Spend Y/Y

Total Ad Spend Digital Traditional 6%

-8%

-30%

Buy-Side, n=135 Q: Please share your expected % increase/decrease or (0) for no change for 2020 (Jan-Dec) vs. 2019 (Jan-Dec) by CHANNEL for your primary brand. IAB Proprietary Research 7 Note: Total Traditional Media & Total Digital Media percentages are average estimates based on Buy-Side projections per channel Only Digital channels can expect net gains in FY2020 ad spend

Est. % Change in FY 2020 Ad Spend vs 2019

Linear TV -24% CTV +19% Digital Digital Video +18% Traditional OOH -46% Traditional Digital OOH -43% Terrestrial Radio -31% Digital OOH Digital Audio -5% Podcasts -8% Digital Display +15% Direct Mail -17% Print -33% Social Media +25% Paid Search +26% -50% -40% -30% -20% -10% 0% 10% 20% 30% Est. % =/- vs. 2019

Buy-Side, n=135 IAB Proprietary Research 8 Q: Please share your expected % increase/decrease or (0) for no change for 2020 (Jan-Dec) vs. 2019 (Jan-Dec) by CHANNEL for your primary brand. II. 2021 Ad Spend Projections Budget clarity remains elusive for 2021…

At least 70% of Buyers still have 2021 ad dollars in flux Sellers’ Ad Revenue Outlook for 2021 Buyers’ Ad Budget Outlook for 2021

53% Very clear Somewhat clear 21% 40% 11% Ballpark estimates Not clear 12% 70% 9% 12% 12% No idea 4% 26%

Buy-Side, n=135 IAB Proprietary Research 10 Q: At this time, our ad budget outlook for 2021 is: …but those buyers with a view expect spend to increase by 5.3%

Buy-side estimate: Y/Y % change for 2021 ad budgets: +5.3%

Buy-Side with at least ballpark estimates for 2021 (70%), n=95 IAB Proprietary Research 11 Q: Our 2021 ad budgets will be: III. Brand Anxieties around?? UGC & Social Buyers remain concerned about UGC Social Media adjacencies…

Concern about Potential Adjacency to Controversial Content Posted by Consumers

41% Extremely Concerned Fairly Concerned 90%

27% Slightly Concerned

Not Concerned 22% 10% Buyers

Buy-Side, n=135 Q: How concerned is your company about potential adjacency to/association with controversial content posted by consumers on Social Media sites where your primary IABbrand Proprietary is/has Research 13 run advertising? …with 46% of buyers taking a brief stand against Social Media

Buyers: Action Taken

21% Increased/planning to increase Social Media ad budgets 33% Temporarily paused/planning to pause Social Media ad placements 46% Canceled/planning to cancel Social Media ad placements 4% 42% No changes made

Buy-Side, n=135 IAB Proprietary Research 14 Q: Please indicate whether you have/plan to adjust 2020 CREATIVE MESSAGING for your primary brand by strategy, given this year’s events. However, 63% of the Buyers who took a brief stand plan to reengage with Social platforms in the near term—either in August or by Q4 of 2020

How Long Buyers will be Temporarily Pausing or Completely Canceling Social Media Placements

13% Pausing through July only (restarting in August) 8% 30% Pausing for more than 1 month (restart later in 2020) 63% Canceling through the end of 2020 16% Canceling until further notice (2021+) Other 33%

Base: Buy-Side (46% of Buyers taking a Stand)

Buyers Decreasing/Planning to Decrease Social, n=63 IAB Proprietary Research 15 Q: For how long are/will you be temporarily pausing or completely cancelling Social Media placements for your primary brand? What’s Coming up from IAB Research?

• Buy-side projections for FY 2021 ad spend

• Consumers Perspective: The Value of News

• Understanding 2020’s Impact on

• Brand Disruption: Challenges & Trends

IAB Proprietary Research 16 Appendix

IAB Proprietary Research 17 Who We Surveyed

Company Type: Fielded Aug 3-Aug 13, 2020. 56% N=242 completes from those who have purview

into US advertising spend and revenue in 2020. Buy-Side Sell-Side Note: earlier studies cited have higher completes and remain at a near 50/50 sell/buy split. 44%

Buy-Side / Spend purview: Sell-Side / Revenue purview: § Media leaders: § Publishers planners, strategists, § Programmatic Specialists Respondent Role: C-Level, President, EVP Buyers (e.g., SSPs, Ad Exchanges, 29% Ad Networks) SVP, VP, Director 2% 19% 1% 4% Mgr,3% AE, Planner or Buyer 24% Media ,43% Media Strategist 18% 57% Other Staff: e.g., Analyst, Associate, Assistant, Coordinator

IAB Proprietary Research 18 About Us

The Interactive Advertising Bureau (IAB) empowers the media and industries to thrive in the digital economy. Its membership is comprised of more than 650 leading media companies, brands, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of . In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

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IAB Proprietary Research 19